EARNINGS PER SHARE (EPS)

6 Months Ended

Jul. 03, 2020

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)

11. EARNINGS PER SHARE (“EPS”)

Basic EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding. Diluted EPS is computed by dividing net income by the weighted-average number of common shares outstanding and dilutive potential common shares for the period. Potential common shares include the weighted-average dilutive effects of outstanding stock options and restricted stock awards using the treasury stock method.

The following table sets forth the number of weighted-average common shares outstanding used to compute basic and diluted EPS:

	Three months ended				Six months ended
	July 3,		June 28,		July 3,		June 28,
	2020		2019		2020		2019
	(in thousands, except per share amounts)
Net income (loss)	$	(4,985)	$	1,640	$	(13,139)	$	1,223
Weighted-average common shares outstanding		11,682		11,100		11,593		11,037
Effect of dilutive stock options and restricted stock awards		—		579		—		633
Weighted-average common shares outstanding-diluted		11,682		11,679		11,593		11,670
Earnings (Loss) per share:
Basic	$	(0.43)	$	0.15	$	(1.13)	$	0.11
Diluted	$	(0.43)	$	0.14	$	(1.13)	$	0.10

For the three and six months ended July 3, 2020, the Company reported a net loss, and accordingly, all outstanding equity awards have been excluded from such periods because including them would have been anti-dilutive. For the three and six months ended June 28, 2019, 156,000 and 225,000 options were excluded from the calculation of dilutive potential common shares because including them would have been anti-dilutive.